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©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Overview Re- negotiating Purchasing Contracts Processing Requests for Quotation Creating.

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Presentation on theme: "©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Overview Re- negotiating Purchasing Contracts Processing Requests for Quotation Creating."— Presentation transcript:

1 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Overview Re- negotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Scenario Explorer Scenario Description The following business roles are involved in this scenario: Click process chevrons for details Strategic Buyer Open Legend The Strategic Sourcing business scenario enables you to identify and select suitable new suppliers and to manage relationships with existing suppliers in order to meet the routine purchasing requirements of your company. It involves the definition of requirements for a product, through to the identification and selection of the most suitable suppliers, and finally to the negotiation and creation of a purchasing contract with the chosen supplier. Scenario/Processes Business Value Scenario Flow + Further Information

2 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Overview Scenario Explorer Scenario Description The following business roles are involved in this scenario: The Strategic Sourcing business scenario enables you to identify and select suitable new suppliers and to manage relationships with existing suppliers in order to meet the routine purchasing requirements of your company. It involves the definition of requirements for a product, through to the identification and selection of the most suitable suppliers, and finally to the negotiation and creation of a purchasing contract with the chosen supplier. Click process chevrons for details Strategic Buyer Open Legend Legend Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third- party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Close Legend i Re- negotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Scenario/Processes Business Value Scenario Flow + Further Information

3 ©© 2013 SAP AG. All rights reserved. Renegotiating Purchasing Contracts X Strategic Sourcing Process Details: Renegotiating Purchasing Contracts Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Start contract renegotiation Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply i Performed by Strategic Buyer In the Work Center Sourcing and Contracting The Renegotiating Purchasing Contracts business process enables your purchasing department to renegotiate expiring contracts. A strategic buyer initiates the negotiation process either directly with the current supplier or with additional suppliers. The system automatically creates a sourcing request. The buyer may then create an RFQ (Request for Quotation) from one or more sourcing requests. Scenario/Processes Business Value Scenario Flow + Further Information See also Sourcing Negotiate a Purchasing Contract

4 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Process Details: Processing Requests for Quotation Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Re- negotiating Purchasing Contracts Creating Purchasing Contracts Determining Source of Supply Processing Requests for Quotation Group sourcing request items Create a request for quotation Enter quotes Compare quotes and create follow-up documents X iiii Performed by Strategic Buyer In the Work Center Sourcing and Contracting The Processing Requests for Quotation business process enables your purchasing department to bundle your companys purchasing requirements and to find appropriate sources of supply for the materials and services required. This includes finding sources of supply for purchase requests, for example, and for the negotiation of new or expiring purchasing contracts. You can invite new or existing suppliers to participate in requests for quotation and compare the quotes received easily in the system to determine most suitable supplier for your requirements. Once you have determined the winning quote, the bidders are notified about the outcome of the request for quotation process, and follow-up documents, such as purchase orders or contracts, can be created. Scenario/Processes Business Value Scenario Flow + Further Information See also Request for Quotation Processing Compare Quotes

5 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Process Details: Creating Purchasing Contracts Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Re- negotiating Purchasing Contracts Processing Requests for Quotation Determining Source of Supply Creating Purchasing Contracts Approve purchasing contract Create purchasing contract X ii Performed by Strategic Buyer In the Work Center Sourcing and Contracting The Creating Purchasing Contracts business process enables your purchasing department to manage the entire lifecycle of a purchasing contract. A contract is defined for a best price or discount on the purchased products. Contracts allow companies to reduce their operational costs and gain a greater control over spending and the supplier performance by managing their contract renewals. Strategic buyers can create, modify and approve a contract, and initiate a contract negotiation with suppliers. Buyers can create a contract from a supplier quote during the contract negotiation process, or manually, without a preceding document. A released purchasing contract can be used as a source of supply for the procurement of products through a purchase order or a supplier invoice. The releases made against the contract by these documents are updated in the contract release history. Scenario/Processes Business Value Scenario Flow + Further Information See also Purchasing Contract Processing

6 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Process Details: Determining Source of Supply Scenario Explorer Process DescriptionFurther Information Click process chevrons for details Re- negotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Create a fixed source of supply Create a quota arrangement X ii Performed by Strategic Buyer In the Work Center Sourcing and Contracting The Determining Source of Supply business process allows strategic buyers to prioritize the sources of supply available for a product, by defining quota arrangements and fixed sources of supply. When multiple contracts exist for a single product, buyers can define quota arrangements to define the distribution of purchase orders among several suppliers. If buyers want to prioritize a contract or a list price rather than using a quota arrangement, they can create a fixed source of supply. If both fixed source of supply and quota arrangement exist for a product, the fixed source of supply prevails over quota arrangement. Scenario/Processes Business Value Scenario Flow + Further Information See also Source Determination

7 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Business Value Scenario Explorer Overview For midsize companies that want to increase sourcing efficiency through active management of the contract life cycle a transparent sourcing process is essential. You can benefit from new sources of supply, gain higher discounts from greater volume and a reduced number of suppliers. SAP Business ByDesign helps efficiently manage the strategic sourcing process from bidder invitation and request for quotation through quote evaluation to contract creation. Bundling of multiple sourcing requests into single request for quotation of different types such as basic requests for information, complex requests for quotations, and contract negotiations leads to higher volume and less transactions. Integration into entire supply base as well as to external supplier directories combined with automatic bidder proposal allows easy identification of most suitable bidders Collaboration support through bidder communication using integrated SAP Interactive Forms software (by Adobe®) increases transparency and traceability Seamless integration of request for quotation and contract management enables direct contract creation out of awarded supplier quote. The single access point for contract information including built-in alert for expiring contracts makes it easier for buyers to prepare, analyze, and monitor contracts throughout the entire life cycle. Built in analytics and reports gives immediate access to strategic reporting information such as contract usage and maverick spend. Key Benefits Request Invite Bidders Publish Request for Quotation QuoteAwardContract Create and Approve Contract Monitor Contract Receive Quotes Evaluate Quotes Award Quotes Communicat e Decision Business Value Scenario/Processes Scenario Flow + Further Information

8 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Flow Variant: Start from Purchasing Contract Legend & Variants Scenario Explorer Creating Purchasing Contracts Determining Source of Supply Sourcing and Contracting Dotted line = optional Process mainly driven by the user Work Center Work center in which process is performed Business document flow Variants of the Scenario: Start from Purchasing Contract Start from RFQ Start from Purchasing Contract Renegotiation Start from Purchasing Contract Renegotiation Scenario Flow Scenario/Processes Business Value + Further Information

9 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Flow Variant: Start from RFQ Legend & Variants Variants of the Scenario: Scenario Explorer Creating Purchasing Contracts Determining Source of Supply Processing Requests for Quotation Sourcing and Contracting Start from Purchasing Contract Start from RFQ Start from Purchasing Contract Renegotiation Start from Purchasing Contract Renegotiation Scenario Flow Scenario/Processes Business Value + Further Information Dotted line = optional Process mainly driven by the user Work Center Work center in which process is performed Business document flow

10 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Scenario Flow Variant: Start from Purchasing Contract Renegotiation Scenario Explorer Legend & Variants Variants of the Scenario: Start from Purchasing Contract Start from RFQ Start from Purchasing Contract Renegotiation Creating Purchasing Contracts Determining Source of Supply Processing Requests for Quotation Renegotiating Purchasing Contracts Sourcing and Contracting Scenario Flow Scenario/Processes Business Value + Further Information Dotted line = optional Process mainly driven by the user Work Center Work center in which process is performed Business document flow

11 ©© 2013 SAP AG. All rights reserved. Strategic Sourcing Further Information Scenario Explorer Forum Get in touch with experts to discuss your specific requirements. To enter the community, click here.*click here More Details SAP provides a complete product documentation, covering all aspects of the business scenario. For more details, click here.click here Self-Enablement Systems If you want to try out the business scenario, click here.*click here WIKI In addition to the product documentation, SAP provides Wikis that describe additional aspects of SAP Business ByDesign. To access the WIKI, click here.*click here Do you want to try it out?Do you need more information?Do you want to discuss with others? VV * Note that to access the links above you need to have a user in SAP Business Center. If you cannot access the page directly and if you are using Microsoft Internet Explorer®, please check Further Information + Scenario/Processes Business Value Scenario Flow


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